Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

At the Press Club yesterday, I think it was, I made the point that in this debate there are those who have taken refuge in slogans, those who have taken refuge in stunts and those who have taken refuge in fear and negativity. It is unfortunate, Senator Payne, that you have joined the latter. I would have thought better of you. If that is the case, so be it. The fact is that we have provided very significant assistance to the electricity sector to reflect the adjustment that will be required. That was announced in the white paper. We recognise that the introduction of the CPRS could have an impact on the asset values of the most emissions-intensive generators. That is why we have provided, through the Electricity Sector Adjustment Scheme, free permits worth approximately $3.8 billion to be focused on the most emissions-intensive generators; it is because these generators are likely to experience large losses in asset value. This scheme is designed to maintain investor confidence and to support a smooth transition in the electricity sector. In addition to the ESAS, the broader design of the scheme, such as, for example, the international linking that is proposed to be in place, supports a smooth transition in the energy sector that does not risk Australia’s energy security.